Highfields Capital Management
| Highfields Capital Management | |
| Company type | Limited Partnership |
|---|---|
| Industry | Hedge funds[1] |
| Founded | June 15, 1998[2][1] |
| Headquarters | , |
| AUM | US$12.1 billion (2018) |
| Website | www |
Highfields Capital Management LP is a hedge fund founded in 1998 which had assets of $12.1 billion in 2018.[3][4] The annualized net returns during the firm's first 20 years were more than 10%.[5]
Business
[edit | edit source]Richard Grubman and Jonathon Jacobson met at an investment lunch in New York City in the early ‘90s and started a friendship. In 1998, they opened Highfields Capital Management LP together in Boston, Massachusetts.[6]
Highfields has invested in publicly traded equities and private companies like Harry & David, Michaels, Genworth Financial, Microsoft[7] and SLM Corporation;[8] and other investments including reinsurance sidecars. Grubman and Jacobson gained attention and a large payoff when they bet against Enron before the 2001 bankruptcy.[9] In February 2012, Highfields called for management change at CoreLogic,[10] in which it had a 7.65% stake.[11]
In 2010, Highfields was listed as having $10 billion of assets on January 1, 2010, 30th in The Hedge Fund Journal Top 50, up from $9.3 billion on July 1, 2009 and up from a 38th-place ranking in 2008.[12]
In 2013, Highfields returned $2 billion to clients. As Jacobson wrote to investors, "we would rather be slightly smaller and generate better [returns]."[13]
In October of 2018, Highfields announced in a letter that they would return all outside capital[14] and would convert into a family office.[15] In a third quarter letter to investors, Jacobson wrote, “Done correctly, money management is an all-consuming, 24/7 pursuit… After three-and-a-half decades of sitting in front of a screen, I realized I am ready for a change."[16]
Over the 20 years between 1998 and 2018, Highfields only lost money in two years: 2002 and 2008.[9]
Senior management
[edit | edit source]Richard Grubman and Jonathon Jacobson co-founded Highfields Capital Management LP in 1998.[12]
Grubman retired in August 2010; Jacobson remains a principal of the firm.[17]
Jacobson is an undergraduate alumnus of Wharton School in finance and has an MBA from Harvard Business School.[11] After working as an options trader and at Merrill Lynch and Lehman Brothers, he joined Harvard Management Company in 1990.[18] In 1998 Jacobson left HMC to co-found Highfields with a third of the fund's initial $1.5 billion under management coming from HMC.[11] Bloomberg reported in 2011 that Harvard Management Company no longer invested with Highfields.[19]
References
[edit | edit source]- ^ a b c "Company Overview of Highfields Capital Management, LP", businessweek.com. Retrieved March 27, 2012.
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ a b Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ "Highfields Calls for Ouster of CoreLogic's Management"[permanent dead link], New York Times, February 28, 2012. Retrieved 2012-11-07.
- ^ a b c "Highfields Capital Management", Hedge Fund Letters, n.d. Retrieved 2012-11-07.
- ^ a b McIntosh, Bill, ed., "The US50", The Hedge Fund Journal in association with Newedge Prime Brokerage Group. Retrieved 2012-03-27.
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Wee, Gillian, "Harvard's Crimson Cubs With $43 Billion Dwarf Their Former Endowment Home", Bloomberg, March 2, 2011. Retrieved 2012-11-07.
